Introduction To Management Information Systems

Technical University of Mombasa
TOPIC ONE: INTRODUCTION TO INFORMATION SYSTEMS IN GLOBAL

BUSINESS TODAY.
1. Session Objectives
By the end of this session, you should be able to:
 Understand how information system is transforming businesses
 Discern the meaning of information system
 Identify the activities and disciplines used to study information systems
 Understand how Management Information Systems will help student career.
2. How Smart Stores are reinventing the retail space.

 Traditional retail stores are using information technology to bring people into
physical stores, or enhance their in-store experience e.g. Acrelec (French
digital signage company) uses technology to help retailers manage their
stores. Consumers can use a retailer smartphone app to indicate they are
coming to pick up an order. Acrelec system estimates arrival time of the
customer, object recognition cameras identify exactly when a customer car
arrives and where it is packed.
 New systems for Smart shelves use proximity services, 3D cameras,
microphones, Weight sensors to enable interactions between shoppers in
physical stores and the shelves they are standing in front of.
 Retailers are able to improve operational efficiency by noting specific shelves
that require stocking. Through Smart shelves shoppers can locate products
themselves through their smartphones and tablets.
 AWM is a walk in walk out store allowing shoppers to shop as normal and
check out by simply exiting the store. The system uses digital shelving and
object recognition cameras to keep track of any products leaving the premises.
The system then charges the customers’ digital accounts when they leave with
purchases and they receive their receipts via email or text message. Other
examples include Quick eats for grabs and go products such as sodas, water,
juice, sandwiches, cheese plates.
 AWM smart shelf personalizes shoppers’ experiences when they are in stores.
Even if they don’t purchase the product. E.g. if a customer picks up an item
then puts it back, the retailer can use the system to offer discount in the shelf
beneath that item so that the customer can view the discount next time the
encounter similar item.
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 AWM offers an anonymous consumer behaviour tracking app that directs
customer to other parts of the stores using digital signage enabling up-to-the
minute advertising and pricing.
 AWM can be implemented in a wide range of store sizes e.g. micromarkets,
convenience stores.
 Above examples show how information systems are important today. They
provide new ways of drawing buyers into physical stores and making in-store
buying experiences more efficiently, safely and pleasant. Brick and Mortar
stores using innovative systems bases on object recognition technology,
sensors and smartphones and leading-edge technologies to drive business
operations and make management decisions.
 To effectively use new digital tools Acrelec and AWM smart shelf had to
design jobs and procedures for gathering, inputting and accessing
information to enhance efficiency, service and profitability.
Questions;
i) How do Acrelec and AWM systems change retail operations/
ii) How do they improve the customer experience.
Business Challenges
Competition from online retailers
Opportunities from new technology
Management
 Devise technology strategy
 Select technologies
Organization Information System

 Revise job functions View and track products in real time
 Revise business procedures Personalize shoppers experience
Technology
 Smartphones Business solutions
 Object recognition technology Increase sales
 HD Cameras Improve service
 Sensors Improve operations
 Information Systems and technologies are transforming the global business

environment. In 2019, global spending on information technology was nearly
USD 3.8 Trillion.
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3. What’s new in Management information systems
I. IT Innovations
 Continuous streams of IT Innovations are transforming the traditional
business operations in the hospitality industry e.g.
(i.) Emergence of cloud computing

(ii) Growth of mobile digital business platform (smartphones and tablets)
(iii) Big data and internet of Things (IoT)
(iv) Business analytics
(v) Machine learning systems
(vi) Use of Social networks.
II. New Business Models

 Emergence of online video services for streaming or downloading such as
Netflix, Apple TV channels, Amazon
 Netflix has moved into premium TV show production with nearly 1,200
original shows in 2019 challenging cable and broadcast producers of TV
shows disrupting cable network dominance of TV shows productions.
 Apple has struck deals with major Hollywood studios for recent movies and
TV shows. Viewers are now unplugging from cable and using only the
internet for entertainment.
III. E-Commerce expansion

 E-Commerce is changing how firms design, produce and deliver their
products and services disrupting the traditional marketing and advertising
industry competing major media and content firm.
 Facebook and other social networking sites such as you tube, twitter, Tumblt,
Netflix, Apple music are new face of e-commerce selling services.
 Growth of social commerce is driven by powerful growth of the mobile
platform. 98% of face book users access the service from mobile phones and
tablets.
 Information systems and technologies are the foundation of this new service
based e-commerce.
IV. Management changes

 Mobile smartphones, high-speed wireless WIFI networks, tablets have
enabled managers to be in constant contact with their employees through
enterprise-wide information systems. Managers get instant access to
important information they need to know for accurate and timely decisions.
 Social networking tools, wikis, blogs are important corporate tools for
communications, collaboration and information sharing.
V. Changes in Firm and Organization
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 More firms are putting less emphasis on hierarchy and structure and instead
more emphasis on employees taking on multiple roles and tasks and
competencies while collaborating with others on a team.
 Firms are putting emphasis on higher speed, more accurate decision making
based on data and analysis.
 Firms are becoming increasingly aware of changes in technology, consumer
activities and culture.
 Firms are using social media to converse with consumers and demonstrate a
greater willingness to listen to consumers.
 Firms show better understanding of the importance of information
technology in creating and managing business firms and other organizations.
4. Globalization challenges and opportunities; A flattened world.

 Prior to AD 1,500, there was no global economic systems of trade that
connected all the continents apart from regional trade markets. After 16thC, a
global trading system began to emerge based on advances in navigation and
ship technology.
 Industrial revolution emerged by expansion of trade among nations making
nations both competitors and collaborators in business.
 Internet has heightened the competitive tensions among nations as global
trade expands. This has expanded the opportunity for people to
communicate with one another and reduced economic and cultural
advantages of developed countries.
 US and Europe are in fight for their economic lives; competing for job
markets, resources, ideas with highly educated, motivated population in low-
wage areas in the less developed world.
 US, Europe, other advanced industrial countries depend on imports and
exports e.g. 50% of Intel’s revenues in 2019 came from overseas sales of
microprocessors.
 In a normal year, about 300,000 service jobs mover offshore to lower-wage
countries for jobs in less skilled information systems occupations,
architecture, financial services, customer call centers, consulting, engineering
etc.
 Outsourcing has accelerated development of new systems by reducing the
cost of building and maintaining them.
NB;
 Challenges for a business student is to develop high level skills through

education and on the job experience that can’t be outsourced.
 Challenge for businesses and firms is to avoid markets for goods and services
that can be produced offshore much less expensively.
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5. Linkages between Globalization and MIS
 Emergence of internet into a full blown international communications system
has drastically reduced cost of operating and transacting on a global scale.
 Customers can now shop in a worldwide marketplace, obtaining price and
quality information reliably 24hrs a day.
 Firms producing goods and services on a global scale achieve extraordinary
cost reduction by finding low cost suppliers and managing production in
other countries.
 Internet service firms such as Google, eBay are able to replicate their business
models and services in multiple countries without having to design their
expensive fixed-cost information system infrastructure.
6. Academic disciplines for the study Information Systems.

 Information Systems field can be viewed through technical and behavioiural
approaches thus Information Systems can be termed as socio-technical
systems. The machines, devices and hard physical technology require social,
organizational and intellectual investments to make them work properly.
7. The Field of Management Information Systems has 4 main actors;
The following actors produce the Management Information Systems
(i.) Suppliers of hardware, software (the technologists)

(ii) Business firms making investments and seeking to obtain value from the
technology
(iii) Managers and employees seeking to achieve business value.
(iv) Firms’ Social, Cultural and Legal environment.
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Technical University of Mombasa

TOPIC ONE: INTRODUCTION TO INFORMATION SYSTEMS IN GLOBAL

2. How Smart Stores are reinventing the retail space.

Organization Information System

 Information Systems and technologies are transforming the global business

(i.) Emergence of cloud computing

II. New Business Models

III. E-Commerce expansion

IV. Management changes

V. Changes in Firm and Organization

4. Globalization challenges and opportunities; A flattened world.

 Challenges for a business student is to develop high level skills through

6. Academic disciplines for the study Information Systems.

7. The Field of Management Information Systems has 4 main actors;

The following actors produce the Management Information Systems

(i.) Suppliers of hardware, software (the technologists)

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